Of Vivian Callaway's Problems in Finding a New Dessert Product

question 62

Multiple Choice

of Vivian Callaway's problems in finding a new dessert product was that consumers often say one thing in a market research study,then behave differently in an actual supermarket setting.To overcome this problem,Callaway and her team did a lot of "iterative experimentation" in the marketplace.This strategy involved

• A) interviewing only those customers who were leaving the supermarket with a RTE dessert product.
• B) interviewing only those customers who were leaving the supermarket without an RTE dessert.
• C) conducting market research on desserts in shopping malls so customers didn't know which dessert was being studied, thereby reducing bias.
• D) offering customers two samples of the identical product to cull out respondents who couldn't give an accurate assessment.
• E) putting a prototype product in the store, making changes based upon consumer responses, and then repeating the process.

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Definitions:

Marginal Cost

Refers to the additional expense associated with producing one more unit of a good or service, reiterated in a new explanation.

Marginal Revenue

Additional earnings derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional expense incurred when one more unit of a product or service is created.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit cost of production.